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Fundamentals of FHA Underwriting

This course is designed for those new to underwriting FHA loans, but have experience underwriting conventional loans, and can complete an analysis of credit, liability, income and, asset documentation. This course consists of underwriting basics specific to FHA, such as: borrower eligibility, property eligibility, loan limits, mortgage transactions, mortgage insurance premiums, FHA programs and more. The target audience would include processors, underwriters, quality control staff, and anyone who wants to better understand the underwriting process of FHA loans.

What it's about By the end of this course students will be able to effectively transition from conventional to FHA underwriting; be able to calculate mortgage insurance premiums (MIP) and maximum mortgage amounts and determine eligibility for the applicant and property.

Classes consist of four 90-minute live sessions with instructors delivered through the WebEx conferencing platform.

This course is designed for those new to underwriting FHA loans, but have experience underwriting conventional loans, and can complete an analysis of credit, liability, income and, asset documentation. This course consists of underwriting basics specific to FHA, such as: borrower eligibility, property eligibility, loan limits, mortgage transactions, mortgage insurance premiums, FHA programs and more. The target audience would include processors, underwriters, quality control staff, and anyone who wants to better understand the underwriting process of FHA loans.

What will I learn?

Upon completion of the course, students will be able to:

  • Recognize the forms required for FHA financing
  • Calculate loan amounts, qualifying ratios and mortgage insurance premiums
  • Identify FHA technology as it applies to underwriting
  • List borrower benefits of an FHA loan
  • Identify basic income, assets and related underwriting policies
  • Identify basic credit history, liabilities and related underwriting policies
  • Recognize things that affect maximum mortgage
  • Identify differences between conventional and FHA appraisal requirements

Benefits

Upon returning to the office, students will be able to:

  • Enhance your underwriting skills
  • Add a new program to your tool belt when you add FHA to your underwriting resume’.

Participants will be provided a student manual for each of the four sessions.
Participants will be required to complete an assessment at the end of the course to assess mastery of the content.
To receive the Certificate of Completion participants must receive a course total of 70% or greater.

Agenda

During the course the following topics will be covered:
Session One - Topics

  • Introduction to FHA
    • FHA Credit Policy Guidelines & Regulations
    • FHA Direct Endorsement
    • FHA versus Conventional
  • FHA Underwriting Process
    • Borrower Approval or Rejection
  • Using FHA Technology
  • General Program Eligibility

Objectives

  • Recognize the key differences between FHA & Conventional lending
  • Identify handbooks and resources available to clarify FHA requirements
  • Understand FHA technology applications as they apply to the underwriter

Session Two - Topics

  • TOTAL Scorecard
  • FHA Loan Limits
  • Transactions That Affect Maximum Mortgage
  • Mortgage Insurance Premiums
  • FHA Disclosures and Form

Objectives

  • Describe TOTAL Scorecards purpose and its relationship to AUS findings
  • Successfully calculate maximum mortgage amounts
  • Successfully calculate total mortgage amounts to include the mortgage insurance premium
  • List FHA specific disclosures and forms

Session Three - Topics

  • Mortgage Credit Analysis
    • General Overview
    • Liabilities and Credit
    • Employment and Income

Objectives

  • Conduct a Mortgage Credit Analysis covering:
    • Describe in general terms what an analysis consists of
    • Successfully complete a basic analysis of liabilities and credit documentation
    • Successfully complete a basic analysis of employment and income documentation

Session Four - Topics

  • Conduct a Mortgage Credit Analysis covering:
    • Qualifying Ratios
    • Compensating Factors
    • Assets and Funds to Close
  • FHA Appraisal Requirements
  • Review of DU/LP Findings with TOTAL Scorecard
  • Review of the 92900 LT

Objectives

  • Successfully complete a basic analysis of asset documentation
  • Describe standard qualifying ratios and when higher ratios would be allowed
  • Describe basic appraisal requirements specific to FHA
  • Describe the difference between a Conventional 1008 Transmittal and an FHA 92900 LT

2019 Schedule

Dates Price Type Location  
5, 7, 12, 14 $600 Online Virtual Class Online Register
Dates Price Type Location  
7, 14, 21, 28 $600 Online Virtual Class Online Register
Dates Price Type Location  
15, 17, 22, 24 $600 Online Virtual Class Online Register
Dates Price Type Location  
5, 7, 12, 14 $600 Online Virtual Class Online Register
Dates Price Type Location  
8, 15, 22, 29 $600 Online Virtual Class Online Register
Dates Price Type Location  
5, 7, 12, 14 $600 Online Virtual Class Online Register